This research investigates the interconnected factors of financial literacy and digitised investment behaviour of Generation Z inhabiting the financial ecosystem in India that is increasingly becoming digitised. The study examines nine significant drivers through the lens of a cross-sectional survey involving 115 respondents aged 18–27 years, including financial knowledge, trust in digital finance platforms, digital literacy, social media and peer effect, perceived financial risk, consumer experience and design of the application, financial socialization by parents, awareness of regulations, and the perception of uncertainty in the economy. ISM is used for the identification of hierarchal relationships between all the variables, whereas MICMAC analysis is used for classifying the variables on the basis of driving power and dependence power. Our results indicate that regulatory awareness, perception of economic uncertainty, and financial socialization by parents are the exogenous high-driving determinants of the intermediate enablers of financial literacy and digital literacy, and the intermediate determinants of the dependent factors like trust, perceived risk, and user experience. This hierarchy demonstrates that policy and practice must build on higher-ordered enablers before approaching determinants of behaviours at lower order levels. The study contributes theoretically by integrating the Theory of Planned Behaviour and Technology Acceptance Model, and offers practical recommendations for policymakers, educators, and fintech designers to foster sustainable financial literacy and digital investment participation among Gen Z.